Gemini

PCF Group 2023 Financial Results

The 2023 financial results for PCF Group reflect a challenging fiscal year characterized by a significant decline in profitability, largely driven by the impairment of the Dagger project and increased operational costs.

Consolidated Quarterly Report for First Quarter 2024

PCF Group demonstrated a significant operational recovery during the first quarter of 2024, characterized by a substantial increase in consolidated revenue to PLN 56.9 million, up from PLN 34.9 million in the same period of 2023.

• PCF Group reported Q1 2024 consolidated revenue of PLN 56.9 million, a significant increase from PLN 34.9 million in Q1 2023, driven largely by self-publishing growth from PLN 2.1 million to PLN 20.9 million.
• The Group incurred a consolidated net loss of PLN 0.9 million, an improvement over the PLN 4.3 million loss in the prior year, with the parent company achieving a net profit of PLN 5.7 million.
• Portfolio optimization led to the cancellation of Project Dagger, resulting in a PLN 68.3 million non-cash write-off, and the termination of the Bulletstorm VR agreement with Incuvo S.A. to regain commercial control.

People Can Fly Financial Results 2023

The 2023 financial results for PCF Group S.A. (People Can Fly) detail a transitional and challenging fiscal year for the Warsaw-based game developer.

• People Can Fly reported a net loss of 75.6 million PLN in 2023, largely driven by a 68.3 million PLN non-cash write-off following the cancellation of Project Dagger.
• Consolidated revenue fell to 150.1 million PLN from 180.3 million PLN in 2022, a decline attributed to the previous year's high comparative base from a terminated Take-Two Interactive contract and the launch of Green Hell VR.
• The company is implementing austerity measures, including office closures and spending freezes, to address liquidity concerns and rising costs associated with a 24% increase in headcount to 756 employees.

Letter to Shareholders

This shareholder letter details the strategic restructuring and financial challenges faced by PCF Group S.A. throughout 2024 and early 2025.

• PCF Group S.A. recorded a 154.9 million PLN impairment charge for Project Bifrost in late 2024, alongside a 7.7 million PLN write-off for the cancellation of Projects Dagger and Red.
• The company is pivoting away from self-publishing and VR to focus on Work-for-Hire (WFH) contracts and AAA action titles to stabilize its financial foundation.
• Financial pressures and project cancellations led to the company's first year-over-year workforce reduction, impacting over 150 employees across departments and the Square Enix-partnered Project Gemini.

PCF Group Current Report No. 2/2024: Short-Term Production Agreement for Project Gemini

The report announces the conclusion of a short-term executory agreement that extends the content-rider attached to the production-publishing contract for the AAA title Project Gemini.

• PCF Group signed a short-term agreement on 30 January 2024 to continue work-for-hire development on the AAA title Project Gemini following the expiration of the previous contract rider.
• The company is downsizing the Project Gemini development team, resulting in a workforce reduction of more than 30 employees.
• The agreement serves as a bridge while PCF Group and publisher Square Enix Limited finalize strategic decisions regarding the project’s future scope and collaboration.

Current Report No. 59/2023: Decision to Limit the Scope of Project Dagger – Correction

The correction clarifies a corporate decision by PCF Group S.A., headquartered in Warsaw, to temporarily limit the scope of its internally funded Project Dagger.

• PCF Group S.A. has suspended the AAA release schedule for Project Dagger, originally planned for the 2025–2026 window.
• The majority of the Project Dagger development staff is being reallocated to three other internal projects: Maverick, Bifrost, and Victoria.
• A core team of approximately ten members will remain on Project Dagger to redefine its development direction and create a new pre-production version based on external feedback.

Current Report No. 58/2023: Strategic Talks Regarding Project Gemini

The board of PCF Group S.A., headquartered in Warsaw, announced the initiation of strategic negotiations with long-standing group publisher Square Enix Limited concerning the development model and commercial terms of the Gemini game project.

• PCF Group S.A. has entered strategic negotiations with Square Enix Limited to redefine the development model and commercial terms for the 'Gemini' game project.
• The current 'Gemini' project is being executed under a work-for-hire arrangement, but the board anticipates a high probability that future delivery terms will diverge from the existing contract.
• As of 24 November 2023, PCF Group continues to develop the project according to the original contractual framework while negotiations are ongoing.

Półroczne Sprawozdanie Zarządu z Działalności Grupy Kapitałowej PCF Group S.A. i Spółki PCF Group S.A.: za okres 1.01.2023 – 30.06.2023

PCF Group S.A. underwent a significant strategic transition during the first half of 2023, shifting its focus toward self-publishing and Game-as-a-Service models while maintaining a robust global presence across Poland, North America, and Europe.

• PCF Group raised approximately 235 million PLN through Series F and G share issuances, securing Krafton, Inc. as a 10% anchor investor to fund its 2023–2027 growth strategy.
• The company reported a net loss of 13.1 million PLN on 68.7 million PLN in revenue, representing a 24% year-over-year decline in revenue.
• Revenue remains highly concentrated, with over 75% derived from a single work-for-hire contract with Square Enix and no royalty payments received for Outriders to date.

Report on Operations of the Capital Group and PCF Group S.A. in 2022

The 2022 Management Board Report for PCF Group S.A. outlines a pivotal strategic transition for the organization as it shifts from a traditional work-for-hire model toward a self-publishing, Games-as-a-Service (GaaS) framework.

• PCF Group S.A. is transitioning from a work-for-hire model to a self-publishing, Games-as-a-Service (GaaS) framework, targeting 3 billion PLN in revenue by 2027.
• The company is scaling a development pipeline that includes projects Gemini, Dagger, Bifrost, and Victoria, supported by strategic partnerships with Square Enix and Krafton, Inc.
• In 2022, the group generated 171.5 million PLN in sales revenue, though net profit declined due to high investment costs and the restructuring of the Project Dagger agreement to regain full IP rights from Take-Two Interactive.

People Can Aviators of Gamedev: New Strategy, New Opening

People Can Fly (PCF) Group is a veteran developer specializing in AAA action and shooter video games, currently executing a strategic transition from a work-for-hire model toward self-publishing.

• People Can Fly is shifting its business model from a work-for-hire structure to self-publishing, aiming for the majority of future revenue to come from its own proprietary IP.
• The company targets 3.0 billion PLN in cumulative revenue for the 2023–2027 period, building on 608 million PLN in revenue and 185 million PLN in EBITDA reported between 2018 and 2022.
• The development pipeline includes four core AAA titles—Gemini, Dagger, Bifrost, and Victoria—scheduled for release between 2025 and 2026.

Aktualizacja Strategii Nowe Otwarcie: Polska

People Can Fly’s strategic update, issued on 31 January 2023, outlines a transformation from a single-title studio into a multi-project, globally distributed developer and emerging self-publisher.

• People Can Fly aims to generate at least 3 billion PLN in combined revenue between 2023 and 2027 through a portfolio of six new releases.
• The studio is transitioning from a single-title developer to a multi-project, self-publishing entity capable of simultaneous AAA production.
• The development pipeline includes the AAA work-for-hire title Gemini (2026), three self-funded AAA projects (Dagger, Bifrost, and Victoria) slated for 2025-2026, and various compact-AAA and VR titles.

Aktualizacja Strategii Nowe Otwarcie 2023

The strategy overview presents PCF Group S.A. as a leading Polish producer of AAA-level shooter games built on Unreal Engine, emphasizing its extensive experience, proprietary technology, and international development network.

• PCF Group targets a revenue multiplier for 2023–2027 comparable to the 4.9-fold growth seen between 2018 and 2022, when cumulative revenue reached 608 million złoty.
• The company is shifting to a self-publishing model to support the launch of four core AAA projects and three supplementary titles, including two VR games scheduled for 2025–2026.
• Strategic monetization will pivot toward a 'games-as-a-service' model, incorporating micro-transactions and seasonal passes to scale independent AAA publishing.